CHS Team Members,

Compensation is a key component of the total rewards Children’s Home Society of South Dakota (CHSSD) offers Employees. At CHSSD, we believe it is important that our compensation programs are current, competitive, and understandable. Compensation not only helps us attract and retain qualified employees, but it is also one of the ways we reward Employees.

In the spring of 2024, we conducted our 3rd salary study in 3 years. We partnered with a 3rd party agency, HUB International, a market leader for HR and Compensation, to look at our jobs and compare them with the labor market. At CHSSD’s we want to offer a market competitive base pay range for each job’s relevant labor market (Midwest Region / Human Services / $32M-$34M Annual Revenue & Operating Budget / 363 Employees). Therefore, job value is determined through market analysis, which is the process of gathering compensation survey data to determine the going market rate for a job.

The salary study we completed this past spring showed that CHS is in an excellent position with our wages. It was revealed that 90% of our staff are already within the new proposed pay grades. Additionally, the study introduced a revised pay grade structure, which includes defined pay ranges for each pay grade, with minimums, midpoints, and maximums. CHSSD is well-positioned with our job classifications, pay grades, and overall compensation. We’re excited to share that our pay grades have been expanded, offering even more opportunities for career growth.

Human Resources also looked at pay grade penetration for each employee during the review process. During this one-time review, we looked at full-time staff wages, determined where staff are in their pay grade, and made wage adjustments, if necessary, for years of service.

Each employee will receive an individualized statement from CHS the week of August 19th, 2024, outlining their compensation as well as a compensation review Q&A. This statement will outline the employee’s current wage, any adjustments due to the compensation study or years of service, the new wage, and their current pay grade.

Moving forward CHS will do a wage analysis every 2 years. Pay grades for each position will be visible to all employees in Paylocity in September.

Conversations regarding compensation, pay grades and adjustments should be had with your supervisor and Human Resources.

CHS is fortunate to have great employees and be in a place where we can be competitive with our total rewards program.

Sincerely,

Allison Sanderson, Chief Human Resources Officer

---

Q&A Compensation Administration

1. What are the definitions of words used for compensation at Children’s Home Society?

• Base Pay Structure: The hierarchy of job grades and pay ranges.
• Compensation Philosophy: An organization’s approach to compensating Employees. It supports the business strategy and fits with the organization’s culture.
• Labor Market: Defines where an organization competes for talent and may vary by job type or level. Identified and defined by a combination of the following scope factors: (1) geography (local, regional, national); (2) industry (all industries or industry specific); (3) organization size (annual revenue and number of employees).
• Lump Sum Merit Payment: When merit pay is delivered in the form of a single cash payment separate from base pay (i.e., not folded in). It must be “re-earned” annually.
• Pay Range Penetration: The level of an individual's pay compared to the total pay range.

2. Why did CHS undertake a market salary survey with a 3rd party (HUB International)?

• CHS chose to use HUB for a compensation study to gain an unbiased, expert evaluation of our pay structure. Their specialized expertise and access to extensive market data enable them to offer accurate benchmarking against industry standards and emerging trends.

3. What is the compensation philosophy at Children’s Home Society?

• We understand the importance of compensation in our employees’ lives and as such our compensation goal is to have a market-competitive Total Rewards package that rewards employees based on performance and merit. We do this while maintaining a focus on achieving organizational goals and objectives and remaining true to our core values. We build consistency and transparency into our compensation program so employees understand how their compensation compares against the market.

4. How is a new employee's compensation determined?

• New hires are placed in their job’s pay range based on the experience, skills, and education they bring to their role and the organization.

5. How do I move through my pay grade?

• Employees will be moved through their job’s pay range based on position in the range, job performance, and the annual budget. The compensation program is evaluated annually to ensure continued alignment with the market.

6. When CHS and HUB determined market value on positions, what other organizations were included in the assessment?

• During the last compensation study this spring the market CHSSD was compared to was the Midwest Region / Human Services / $32M-$34M Annual Revenue & Operating Budget / 363 Employees.
• The Midwest Region is encompassed by IA, IL, IN, KS, MI, MN, MO, ND, NE, OH, SD, WI.

7. What happens when I am at the maximum of my pay grade? Do I not get a merit increase?

• Yes, the performance-based merit increase will come as a lump sum payment the first full paycheck in October.

8. I have worked at CHS for over 15 years. Can I make more than the maximum amount for my pay grade?

• No, a pay grade is based on the position and the pay grade ranges with that position.

9. I am interested in moving into a new pay grade. Who do I talk to about the positions in each pay grade?

• Employees interested in growth at Children’s Home Society should have a conversation with their supervisor and Human Resources. We are always eager to help our employees into new roles.

10. How often are salary surveys done at Children's Home Society?

• Children's Home Society will conduct their next salary survey in 2 years.

11. When can I see my pay grade in Paylocity?

• In September, the new pay grades will be visible to employees.

12. If I received an adjustment with the wage study and/or due to pay grade penetration for my years of service. Am I still eligible for a merit increase for 2024?

• Yes, up to a 4%. Conversations about performance-based merit increases will be had with your supervisor in September.

13. What will I learn from my individualized comp statement?

• Current wage, any adjustments (from the salary study, years of service or both), new wage rate as of 09/01/2024, and the pay grade for your position.

14. My wage did not change, why?

• The salary study completed this past spring, determined CHS was in a great spot with our wages. It was determined 90% of our staff were within their new proposed pay grades.

• If your wage did not change, it likely means that your current pay is in line with the salary structure established by the recent study.
• You have been with CHS less than a year as of 06/31/2024. No change was necessary.
  
• Within Pay Grade: If you were in your proposed pay grade and your salary was deemed appropriate for your years of service and current pay, then no adjustment was necessary.
  
• Above Pay Grade: If your salary was higher than the new pay grade structure, no adjustments would be made to reduce it. The policy is to maintain salaries that are above the proposed pay grades as is, rather than lowering them.